Canopy Growth and Sunniva Inc. signs a definitive supply agreement. Sunniva will supply Canopy Growth with 45,000 kilograms of premium quality cannabis annually over an initial two-year period beginning in the first quarter of 2019.
“This agreement represents a significant milestone for Sunniva,” says Leith Pedersen, president, Sunniva. “Providing the supply of premium cannabis products under this agreement allows Sunniva to accelerate the execution of our business plan and distribution strategy. Our focus in the near-term is to build a sustainable and profitable business as we develop the Sunniva brand. We expect to accomplish this by becoming a low-cost, high-quality producer of medicinal cannabis via large-scale purpose-built production facilities which are compliant with good manufacturing practices. By establishing a strategic partnership with Canopy Growth and allocating a significant portion of our production, we de-risk our business model. This agreement evidences the significant potential of our business strategy.”
Canopy Growth and Sunniva will share the revenue sold through the distribution network set up by Canopy Growth, including the online market. The revenue share will be based on the strain, sales channel and other relevant factors. The sgreement is subject to Sunniva receiving its licence from Health Canada, which is currently in the final review stage, and completing the Sunniva Canada Campus, which is a 700,000 square foot GMP greenhouse facility in British Columbia, Canada.
“We are very excited to announce this agreement with Sunniva and welcome such a successful and impressive partner to the CraftGrow line,” comments Mark Zekulin, president of Canopy Growth. “This agreement further establishes our commitment to providing high-quality cannabis products to Canadian consumers. We look forward to working with Sunniva and their management team and anticipate a successful relationship that will be beneficial for both companies.”